Mumbai: With India Inc’s second quarter earnings season set to kick in from the coming week, analysts are expecting a modest growth in earnings on the back of higher realisation in metal and mining and a strong growth in consumer sectors due to restocking post-GST implementation.
However, export linked sectors such as IT and pharma could throw some disappointments due to rupee rise against the US dollar.
“We model 5.7 per cent year on year (YoY) growth in net profits of our coverage universe,” said Sanjeev Prasad, co-head and MD at Kotak Institutional Equities.
According to rating agency Crisil, the aggregate top line of companies in key sectors —excluding BFSI and oil — to grow by seven per cent in Q2. These sectors account for 70 per cent of the market capitalisation of NSE-listed companies.
